Schakowsky, Menendez, Clarke Reintroduce Legislation to Restore FTC Authority to Return Money to Defrauded Consumers

Full Text of Bill (PDF)

WASHINGTON - Today, U.S. Representative Jan Schakowsky (IL-09), Ranking Member of the House Committee on Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade, along with U.S. Representatives Yvette Clarke (NY-09) and Rob Menendez (NJ-08), reintroduced the Consumer Protection and Recovery Act to restore the Federal Trade Commission's (FTC) Section 13(b) consumer protection authority and ensure the agency can return money to consumers harmed by fraud, scams, and other illegal activities.

"For decades, the FTC relied on Section 13(b) to return billions of dollars to consumers cheated by scammers, fraudsters, and other bad actors until the Supreme Court stripped that authority away in 2021," said Congresswoman Jan Schakowsky. "The Consumer Protection and Recovery Act previously passed the House with bipartisan support because protecting consumers should never be a partisan issue. If you're cheated, you deserve to get your money back. Congress should restore the FTC's ability to put consumers first, hold bad actors accountable, and return money to victims of fraud. The American people deserve an FTC that stands up for consumers and ensures that those who break the law are held accountable."

"Americans deserve to know that when they are harmed by fraud, scams, or deceptive business practices, there is a path to justice. Restoring the FTC's Section 13(b) authority will strengthen the agency's ability to hold bad actors accountable and help consumers recover what was wrongfully taken from them," said Congresswoman Yvette D. Clarke. "I'm proud to join Ranking Member Schakowsky and Congressman Menendez in reintroducing the Consumer Protection and Recovery Act to ensure the FTC has the tools it needs to protect the American people."

"As Americans face rising costs and tighter household budgets, they cannot afford to lose hard-earned money to deceptive business practices, scams, and fraud," said Congressman Rob Menendez. "Our legislation restores the FTC's consumer protection authority, equipping it with the tools to hold bad actors accountable and return money to victims. I am proud to co-lead this bill with Reps. Schakowsky and Clarke so we can protect family finances and strengthen consumer safeguards."

The Consumer Protection and Recovery Act restores Section 13(b) as a critical consumer protection tool by clarifying the FTC's authority to seek monetary relief for consumers harmed by violations of the laws it enforces.

Specifically, the legislation:

• Explicitly provides the FTC with the authority to obtain both injunctive and monetary relief for violations of the laws it enforces, including monetary redress for consumers harmed by illegal conduct.
• Clarifies that the FTC may pursue a range of equitable remedies, including restitution for losses, contract reformation and rescission, monetary refunds, the return of property, and requiring bad actors to return their ill-gotten gains.

For more than 40 years, the FTC relied on Section 13(b) to protect consumers and secure billions of dollars in relief for individuals harmed by fraud, scams, and illegal business practices. In 2021, the Supreme Court's decision in AMG Capital Management, LLC v. FTC eliminated the FTC's ability to seek monetary relief under this longstanding authority, leaving consumers without a critical tool to recover money stolen by bad actors.

The Consumer Protection and Recovery Act previously passed the House of Representatives with bipartisan support in the 117th Congress following the Supreme Court's decision to eliminate the FTC's authority to recover money for harmed consumers.

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